Risk assessment and mitigation action plan ensures smooth China plant divestiture for European outdoor product leader

Opportunity

The information provided by ARC Consulting helped the client to set out the options at hand and ultimately to decide whether to divest the production plant in Shenzhen or not. In addition, ARC Consulting outlined additional alternative processes on the divesture as well as information regarding the required timeline, associated risks and costs of each scenario.

The information provided about the consequences of a potential divestment helped the client with guidance and actual facts to support the decisions in each option as well as minimizing the risks and costs of a potential divestment.

Approach

ARC Consulting used a methodical approach based on 3 steps: Data Collection, Analysis and Recommendations.

During the Data Collection phase, two consultants were on-site at the client’s production plant to gather all the relevant documentation, conduct interviews with key personnel and to understand the processes of the factory.

In the Analysis phase, the gathered documentation was reviewed from a legal perspective to cover any possible labor, social insurance or other indemnification liabilities.

Finally, ARC Consulting outlined the Recommendations to the client. The recommendations included all possible paths of divestment, the detailed processes needed and a timeline for each scenario with a clear description of the risks and challenges and how to mitigate these.